|                                                                                                                                 |   |                                                                                                   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
| (Mark One)                                                                                                                           |   |                                                                                                   |
| þ                                                                                                                               |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the fiscal year ended December 31, 2010                                                                                          |
| OR                                                                                                                                   |
| o                                                                                                                                    |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934          |
| For the transition period from ________   to  ________         |

|                                                          |   |                                |
|---------------------------------------------------------------|--------|-------------------------------------|
| Texas                                                         |   | 61-155055                           |
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

----

|     |                                                                                                                |   |   |
|----------|---------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I   |                                                                                                                |   |   |
| Item 1.  | Business                                                                                                            |   | 3      |
| Item 1A. | Risk Factors                                                                                                        |   | 8      |
| Item 1B. | Unresolved Staff Comments                                                                                           |   | 8      |
| Item 2.  | Properties                                                                                                          |   | 8      |
| Item 3.  | Legal Proceedings                                                                                                   |   | 8      |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                                                 |   | 8      |
|     |                                                                                                                |   |
| PART II  |                                                                                                                |   |   |
| Item 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities |   | 9      |
| Item 6.  | Selected Financial Data                                                                                             |   | 10     |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                         |   | 11     |
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk                                                          |   | 16     |
| Item 8.  | Financial Statements and Supplementary Data                                                                         |   | 16     |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                |   | 27     |
| Item 9A. | Controls and Procedures                                                                                             |   | 27     |
| Item 9B. | Other Information                                                                                                   |   | 28     |
|     |                                                                                                                |   |
| PART III |                                                                                                                |   |   |
| Item 10. | Directors, Executive Officers and Corporate Governance                                                              |   | 28     |
| Item 11. | Executive Compensation                                                                                              |   | 30     |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                      |   | 32     |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence                                           |   | 32     |
| Item 14. | Principal Accounting Fees and Services                                                                              |   | 33     |
|     |                                                                                                                |   |
| PART IV  |                                                                                                                |   |   |
| Item 15. | Exhibits and Financial Statement Schedules                                                                          |   | 33     |
|     | Signatures                                                                                                          |   | 34     |

----

----

| ·   | communication with information |
|--------------------|--------------------------------|
| ·   | communication with others      |

| ·   | communication with retailers  |
|--------------------|-------------------------------|
| ·   | communication with physicians |

| ·   | communication with entertainment. |
|--------------------|-----------------------------------|

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----

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|  Name:                        Service Provided  |   Shares Issued        Value                   Date Issued                                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Russell Laurin – Corporate Development                                                                                                                                      | 750,000                    $  7,500                    July, 2010 |
|                                                                                                                                                                              |                                                                                                                                                                                                                                                                                |
| Mark Neisman – Systems Analyst                                                                                                                                              | 850,000                    $  3,500                    July, 2010 |
|                                                                                                                                                                              |                                                                                                                                                                                                                                                                                |
| Anthony Zapata – Marketing Consultant                                                                                                                                       | 550,000                    $  5,500                    July, 2010 |
|                                                                                                                                                                              |                                                                                                                                                                                                                                                                                |
| Charles Fairchild - General Contractor                                                                                                                                            | 549,000                    $  5,490                    July, 2010 |
|                                                                                                                                                                              |                                                                                                                                                                                                                                                                                |
| Joseph Price – Corporate Development                                                                                                                                        | 400,000                    $  4,000                    July, 2010 |
|                                                                                                                                                                              |                                                                                                                                                                                                                                                                                |
| Ashley Wood – Sales Trainer & Consultant                                                                                                                                | 1,500,200                 $15,002                    July, 2010                            |
|                                                                                                                                                                              |                                                                                                                                                                                                                                                                                |
| Richard Stafford – IT Specialist / Systems Administrator                                                                                                                    | 400,000                    $  4,000                    July, 2010 |

----

|                                                 |   | Year EndedDecember 31, 2010 |       |   | Year ended December 31, 2009 |   |
|------------------------------------------------------|--------|-----------------------------|------------|--------|------------------------------|--------|
| Statement of Operations Data:                        |   |                        |       |   |                         |   |   |   |
| Revenue:                                             |   | $                           | 701,603    |   |                         | $      | 620,489 |   |
|                                                 |   |                        |       |   |                         |   |   |   |
| Expenses:                                            |   |                        |       |   |                         |   |   |   |
|   General and administrative                    |   | $                           | 514,133    |   |                         | $      | 309,414 |   |
|   Depreciation                                  |   |                        | 28,366     |   |                         | $      | 22,357  |   |
|                                                 |   |                        |       |   |                         |   |   |   |
| Total expenses                                       |   | $                           | 542,499    |   |                         | $      | 331,771 |   |
|                                                 |   |                        |       |   |                         |   |   |   |
| Net (income)                                         |   | $                           | 99,343     |   |                         | $      | 161,587 |   |
|                                            |   |                        |       |   |                         |   |   |   |
| Basic and diluted net income per share               |   | $                           | 0          |   |                         |   | N/A |   |
| Weighted average number of common shares outstanding |   |                        | 40,207,791 |   |                         |   | N/A |   |
|                                                 |   |                        |       |   |                         |   |   |   |

|    Balance Sheet Data: |   | As ofDecember 31, 2010 |    |   | As ofDecember 31,2009 |   |
|---------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
| Cash and cash equivalents             |   | $                      | 12,021  |   |                  | $      | 8,955 |   |
| Total assets                          |   | $                      | 154,177 |   |                  | $      | 180,446 |   |
| Total long-term liabilities           |   | $                      | 80,609  |   |                  | $      | 104,576 |   |
| Total liabilities                     |   | $                      | 201,594 |   |                  | $      | 191,326 |   |
| Total shareholders’ equity      |   | $                      | 154,177 |   |                  | $      | 180,446 |   |

----

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| ·   | Web Design (15%) |
|--------------------|------------------|

| ·   | Web Development (15%) |
|--------------------|----------------------------|

| ·   | Mobile Design/Development (5%) |
|--------------------|-------------------------------------|

| ·   | Mobile Application Development (5%) |
|--------------------|------------------------------------------|

| ·   | Website Application Development (10%) |
|--------------------|--------------------------------------------|

| ·   | Paid Search Marketing (5%) |
|--------------------|---------------------------------|

| ·   | Media Planning/Buying (2%) |
|--------------------|---------------------------------|

| ·   | Banner Advertising / Rich Media Advertising (5%) |
|--------------------|-------------------------------------------------------|

| ·   | Social media Marketing (5%) |
|--------------------|----------------------------------|

| ·   | Search Engine Optimization (20%) |
|--------------------|---------------------------------------|

| ·   | Email Marketing (5%) |
|--------------------|---------------------------|

| ·   | Reputation management (1%) |
|--------------------|---------------------------------|

| ·   | Mobile Marketing (2%) |
|--------------------|----------------------------|

| ·   | Flash Design/Development (5%) |
|--------------------|------------------------------------|

----

|                      |   |   |          |
|---------------------------|--------|--------|---------------|
| Cash and cash equivalents |   | $      | 12,201        |   |
| Total assets              |   | $      | 154,177       |   |
| Total liabilities         |   | $      |  201,594 |   |
| Total shareholders’ |   | $      | 154,177       |   |

----

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| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Stockholders and Board of Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Yellow7, LLC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| We have audited the accompanying balance sheets of Yellow7, Inc. (formerly Yellow7, LLC), as of December 31, 2010 and 2009, and the related statements of operations, stockholders' equity and cash flows for the years then ended.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audit.                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Yellow7, Inc. (formerly Yellow7, LLC) as of December 31, 2010 and 2009, and results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| /s/ David A. Aronson, CPA, P.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| -------------------------------------                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| David A. Aronson, CPA. P.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| North Miami Beach, Florida                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| March 30, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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| Yellow7, Inc.                                                            |   |
|--------------------------------------------------------------------------|--------|
| (Formerly Yellow7, LLC)                                                  |   |
| Balance Sheet                                                            |   |
| December 31, 2010 and 2009                                               |   |
|                                                                     |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |
| ASSETS                                                                   |   |
|                                                                     |   | 2010 |   |   | 2009 |   |
| Current Assets:                                                          |   |   |   |   |   |   |
| Cash and cash equivalents                                                |   | $ | 12,021 |   |   | $ | 8,955 |   |
| Accounts receivable, net of allowance of $3,500 and $3,500, respectively |   |   | 20,342 |   |   |   | 37,311 |   |
| Deferred tax asset - current                                             |   |   | 16,000 |   |   |   | - |   |
| Total current assets                                                     |   |   | 48,363 |   |   |   | 46,266 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Furniture and Equipment, net                                             |   |   | 105,814 |   |   |   | 134,180 |   |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   | $ | 154,177 |   |   | $ | 180,446 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES AND MEMBERS'/SHAREHOLDERS' EQUITY                            |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Liabilities:                                                             |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                    |   | $ | 97,593 |   |   | $ | 61,918 |   |
| Loans payable - current portion                                          |   |   | 23,392 |   |   |   | 24,832 |   |
|   Total current liabilities                                    |   |   | 120,985 |   |   |   | 86,750 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Non-current Liabilities                                                  |   |   |   |   |   |   |   |   |
| Loans payable - net of current portion                                   |   |   | 80,609 |   |   |   | 104,576 |   |
| Total non-current liabilities                                            |   |   | 80,609 |   |   |   | 104,576 |   |
| Total liabilities                                                        |   |   | 201,594 |   |   |   | 191,326 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Members'/Stockholders' Equity (Deficit):                                 |   |   |   |   |   |   |   |   |
| Common stock, $0.0001 par value; 100,000,000 shares authorized,          |   |   |   |   |   |   |   |   |
| 40,210,000 shares issued and outstanding                                 |   |   | 4,021 |   |   |   | - |   |
| Additional paid in capital                                               |   |   | 2,499 |   |   |   | - |   |
| Members' Equity (Deficit)                                                |   |   | - |   |   |   | (10,880 | ) |
| Retained Earnings (Deficit)                                              |   |   | (53,937 | ) |   |   | - |   |
|                                                                     |   |   | (47,417 | ) |   |   | (10,880 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   | $ | 154,177 |   |   | $ | 180,446 |   |

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| Yellow7, Inc.                                       |   |
|-----------------------------------------------------|--------|
| (Formerly Yellow7, LLC)                             |   |
| Statements of Operations                            |   |
| For the Years Ended December 31, 2010 and 2009      |   |
|                                                |   |   |   |   |   |   |
|                                                |   | For the Year Ended December 31, |   |
|                                                |
|                                                |
|                                                |   |   | 2010 |   |   |   | 2009 |   |
|                                                |   |   |   |   |   |   |   |
| Revenue, net                                        |   | $ | 701,603 |   |   | $ | 620,489 |   |
|                                                |   |   |   |   |   |   |   |   |
| Cost of sales                                       |   |   |   |   |   |   |   |   |
| Contract labor                                      |   |   | 47,176 |   |   |   | 76,905 |   |
| Other costs of sales                                |   |   | 28,585 |   |   |   | 28,268 |   |
| Total cost of sales                                 |   |   | 75,761 |   |   |   | 105,173 |   |
|                                                |   |   |   |   |   |   |   |   |
| Gross profit                                        |   |   | 625,842 |   |   |   | 515,316 |   |
|                                                |   |   |   |   |   |   |   |   |
| Operating expenses:                                 |   |   |   |   |   |   |   |   |
| Advertising                                         |   |   | 19,777 |   |   |   | 10,886 |   |
| Provision for bad debts                             |   |   | 15,505 |   |   |   | 25,023 |   |
| Depreciation                                        |   |   | 28,366 |   |   |   | 22,357 |   |
| Rent                                                |   |   | 45,775 |   |   |   | 50,920 |   |
| Officers' compensation                              |   |   | 130,261 |   |   |   | - |   |
| Salaries                                            |   |   | 106,407 |   |   |   | 84,832 |   |
| Telephone                                           |   |   | 18,098 |   |   |   | 23,673 |   |
| Other                                               |   |   | 178,310 |   |   |   | 114,080 |   |
|                                                |   |   | 542,499 |   |   |   | 331,771 |   |
|                                                |   |   |   |   |   |   |   |   |
| Net income before other income and expenses         |   |   | 83,343 |   |   |   | 183,545 |   |
|                                                |   |   |   |   |   |   |   |   |
| Other income and (expenses)                         |   |   |   |   |   |   |   |   |
| Income tax benefit                                  |   |   | 16,000 |   |   |   | - |   |
| Loss on disposal of fixed assets                    |   |   | - |   |   |   | (21,958 | ) |
|                                                |   |   | 16,000 |   |   |   | (21,958 | ) |
|                                                |   |   |   |   |   |   |   |   |
| Net income                                          |   | $ | 99,343 |   |   | $ | 161,587 |   |
|                                                |   |   |   |   |   |   |   |   |
| Net income per common share - Basic and             |   |   |   |   |   |   |   |   |
| fully diluted                                       |   | $ | 0.00 |   |   |   | 115 |   |
|                                                |   |   |   |   |   |   |   |   |
| Weighted average number of shares                   |   |   |   |   |   |   |   |   |
| outstanding - Basic and fully diluted               |   |   | 40,207,791 |   |   |   | 140,238 |   |
|                                                |   |   |   |   |   |   |   |   |
| Pro-forma disclosure of provision for income taxes: |   |   |   |   |   |   |   |   |
| Provision for income taxes                          |   | $ | (19,000 | ) |   | $ | (70,000 | ) |
|                                                |   |   |   |   |   |   |   |   |
| Pro-forma net income                                |   | $ | 80,343 |   |   | $ | 91,587 |   |
|                                                |   |   |   |   |   |   |   |   |
| Pro-forma disclosure of net income per common       |   |   |   |   |   |   |   |   |
| share - Basic and fully diluted                     |   | $ | 0.00 |   |   | $ | 0.00 |   |
|                                                |   |   |   |   |   |   |   |   |
| Pro-forma weighted average number of shares         |   |   |   |   |   |   |   |   |
| outstanding - Basic and fully diluted               |   |   | 40,200,000 |   |   |   | 40,200,000 |   |
| Pro-forma net income per common share - Basic and   |   |   |   |   |   |   |   |   |
| fully diluted                                       |   | $ | 0.00 |   |   | $ | 1.15 |   |

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| Yellow7, Inc.                               |   |
|---------------------------------------------|--------|
| (Formerly Yellow7, LLC)                     |   |
| Statement of Stockholders' Equity (Deficit) |   |
| December 31, 2010                           |   |
|                                        |   |
|                                        |   |   |   |   |   |   |   | Additional Paid in Capital |   |   | Members' Equity (Deficiency) |   |   | Retained Earnings (Deficiency) |   |   | Total Stockholders' Deficiency |   |
|                                        |   |   |   |   |   |   |
|                                        |   |   |   |   |   |   |
|                                        |   | Common Stock |   |
|                                        |   | Shares |   |   | Amount |   |
| Balance - January 1, 2009                   |   |   | - |   |   | $ | - |   |   | $ | - |   |   | $ | 41,590 |   |   | $ | - |   |   | $ | - |   |
| Distributions                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (214,057 | ) |   |   | - |   |   |   | - |   |
| Net income                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 161,587 |   |   |   | - |   |   |   | - |   |
| Balance - December 31, 2009                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (10,880 | ) |   |   | - |   |   |   | - |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income for the period from              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January 1, 2010 through July 13, 2010       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 170,821 |   |   |   | - |   |   |   | - |   |
| Distributions                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (142,400 | ) |   |   | - |   |   |   | - |   |
| Conversion from Limited Liability           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Company to Corporation                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (17,541 | ) |   |   | 17,541 |   |   |   | 17,541 |   |
| Sale of stock for cash                      |   |   | 40,200,000 |   |   |   | 4,020 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,020 |   |
| Sale of stock for cash                      |   |   | 10,000 |   |   |   | 1 |   |   |   | 2,499 |   |   |   | - |   |   |   | - |   |   |   | 2,500 |   |
| Net loss for the period from July 14,       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010 through December 31, 2010              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (71,478 | ) |   |   | (71,478 | ) |
| Balance - December 31, 2010                 |   |   | 40,210,000 |   |   | $ | 4,021 |   |   | $ | 2,499 |   |   | $ | - |   |   | $ | (53,937 | ) |   | $ | (47,417 | ) |

----

| Yellow7, Inc.                                      |   |
|----------------------------------------------------|--------|
| (Formerly Yellow7, LLC)                            |   |
| Statements of Cash Flows                           |   |
| For the Years Ended December 31, 2010 and 2009     |   |
|                                               |   |   |   |   |   |   |
|                                               |   | 2010 |   |   | 2009 |   |
|                                               |   |   |   |   |   |   |
| Cash flows from operating activities:              |   |   |   |   |   |   |
| Net income                                         |   | $ | 99,343 |   |   | $ | 161,587 |   |
| Adjustments to reconcile net loss to net cash used |   |   |   |   |   |   |   |   |
| by operating activities:                           |   |   |   |   |   |   |   |   |
| Depreciation expense                               |   |   | 28,366 |   |   |   | 22,357 |   |
| Accounts receivable                                |   |   | 16,969 |   |   |   | 28,247 |   |
| Deferred tax asset - current                       |   |   | (16,000 | ) |   |   | - |   |
| Accounts payable and accrued expenses              |   |   | 35,675 |   |   |   | 2,369 |   |
| Loss on disposal of equipment                      |   |   | - |   |   |   | 21,958 |   |
| Net cash used by operating activities              |   |   | 164,353 |   |   |   | 236,518 |   |
|                                               |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:              |   |   |   |   |   |   |   |   |
| Purchase of equipment                              |   |   | - |   |   |   | (138,195 | ) |
| Net cash provided by investing activities          |   |   | - |   |   |   | (138,195 | ) |
|                                               |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:              |   |   |   |   |   |   |   |   |
| Proceeds from issuance of common stock             |   |   | 6,520 |   |   |   | - |   |
| Distributions to members                           |   |   | (142,400 | ) |   |   | (214,057 | ) |
| Loans payable                                      |   |   | (25,407 | ) |   |   | 96,620 |   |
| Net cash provided by financing activities          |   |   | (161,287 | ) |   |   | (117,437 | ) |
|                                               |   |   |   |   |   |   |   |   |
| Net increase in cash                               |   |   | 3,066 |   |   |   | (19,114 | ) |
| Cash at beginning of period                        |   |   | 8,955 |   |   |   | 28,069 |   |
| Cash at end of period                              |   | $ | 12,021 |   |   | $ | 8,955 |   |
|                                               |   |   |   |   |   |   |   |   |
| Supplemental cash flow information:                |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                   |   |   |   |   |   |   |   |   |
| Interest                                           |   | $ | 17,555 |   |   | $ | 17,170 |   |
| Income taxes                                       |   | $ | - |   |   | $ | - |   |

----

| Yellow7, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Formerly Yellow7, LLC)                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Notes to Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| December 31, 2010 and 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Note 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Organization                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Yellow7, Inc. (the "Company") was organized in Texas in January 2008 as a limited liability company.  Prior to that date the Company was organized as a general partnership.  On July 13, 2010 the Company's' equity structure was converted to that of a corporation.  The Company provides software development and web development services to the general public.                                                                               |
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| Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured.                                                                                                                                                                                                                      |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Although the Company provides numerous services to its clients the majority of the Company's revenue is derived from website design and development and search engine optimization.  Revenue is recognized at the time the product is delivered or the services are performed.  Provision for sales discounts and allowances will be estimated based on the Company's historical experience.  Revenue is presented net of discounts and allowances. |
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| Concentration of Credit Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
| Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of trade accounts receivable.  The Company minimizes its credit risk by performing credit evaluations of its customers' financial condition.  The Company maintains an allowance for doubtful accounts based upon expected collectability.                                                                                          |
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| Accounts Receivable and Allowance for Doubtful Accounts                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |
| An allowance for uncollectible accounts is estimated and recorded based on the Company's historical bad debt experience and on management's judgment.  The allowance for uncollectible accounts at December 31, 2010 and 2009 was $3,500 and $3,500, respectively.                                                                                                                                                                                                      |
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| Furniture and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| Furniture and equipment are stated at cost.  Maintenance, repairs and minor renewals are expensed as incurred.  Furniture and equipment that is retired or sold, and the related gain or loss, if any, is taken into income currently.  Depreciation is computed using the straight-line method over the estimated useful lives of the assets.                                                                                                      |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| The estimated useful lives for computing depreciation are:                                                                                                                                                                                                                                                                                                                                                                                                                        |

| Equipment and vehicles |   |   |   | 5 - 10 years |   |
|------------------------|--------|--------|--------|--------------|--------|
| Furniture and fixtures |   |   |   | 5 - 7 years  |   |
| Leasehold improvements |   |   |   | 5 years      |   |

----

| Yellow7, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Formerly Yellow7, LLC)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Notes to Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| December 31, 2010 and 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |
| Note 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |
| Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturities of those instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| For purposes of the statement of cash flows, the Company considers all highly liquid equity instruments with a maturity of three months or less to be cash equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| Advertising                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| The Company expenses advertising as incurred.  Advertising expenses for the years ended December 31, 2010 and 2009 were $19,777 and $10,886, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Until July 12, 2010 the Company was a limited liability company, and therefore was not subject to income tax, as any income or loss was included in the personal returns of the individual members.  Accordingly, no provision was made for income taxes in the financial statements through that date.  On July 13, 2010 the Company converted its equity structure to that of a corporation at which time it became subject to income tax.                                                                                                                                                                                                                                                                                                    |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |
| Subsequent to July 12, 2010, deferred income taxes are recognized for the tax consequences related to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes at each year end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.  A valuation allowance is recognized when, based on the weight of all available evidence, it is considered more likely than not that all, or some portion, of the deferred tax assets will not be realized.  Income tax expense is the sum of current income tax plus the change in deferred tax assets and liabilities. |
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| Yellow7, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Formerly Yellow7, LLC)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Notes to Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| December 31, 2010 and 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
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| Note 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Income Taxes (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |
| ASC 740, Income Taxes, requires a company to first determine whether it is more likely than not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information.  A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.                                                                                                                                                                                                                                                                                                                                                                                          |
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| The statements of operations include pro-forma information that shows the tax expense for all periods shown as if the Company's equity structure had been that of a corporation as of January 1, 2009 (see Note 4).  Pro-forma information has also been included for income per common share (basic and fully diluted) and for the weighted average number of shares outstanding (basic and fully diluted) as if the Company had issued the initial 40,200,000 shares on January 1, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| Segment Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| The Company follows Accounting Standards Codification ("ASC") 280, "Segment Reporting".  The Company currently operates in a single segment and will evaluate additional segment disclosure requirements as it expands its operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |
| In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06 - "Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements".  This standard amends the disclosure guidance with respect to fair value measurements for both interim and annual reporting periods.  Specifically, this standard requires new disclosures for significant transfers of assets or liabilities between Level 1 and Level 2 in the fair value hierarchy, separate disclosures for purchases, sales, issuance and settlements of Level 3 fair value items on a gross, rather than net basis, and more robust disclosure of the valuation techniques and inputs used to measure Level 2 and Level 3 assets and liabilities.  The Company adopted the provisions of this guidance, as of January 1, 2010, with no material impact to the financial statements. |
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| Yellow7, Inc.                                                                                     |
|---------------------------------------------------------------------------------------------------|
| (Formerly Yellow7, LLC)                                                                           |
| Notes to Financial Statements                                                                     |
| December 31, 2010 and 2009                                                                        |
|                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |
| Note 2.  FURNITURE AND EQUIPMENT                                                        |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |
| Major classifications of furniture and equipment as at December 31, 2009 and 2008 are as follows: |
|                                                                                              |

|                     |   | 2010   |    |   | 2009   |   |
|--------------------------|--------|--------|---------|--------|--------|--------|
| Vehicles                 |   | $      | 138,195 |   |   | $      | 138,195 |   |
| Equipment                |   |   | 21,154  |   |   |   | 21,154 |   |
| Furniture and fixtures   |   |   | 9,070   |   |   |   | 9,070 |   |
|                     |   |   | 168,419 |   |   |   | 168,419 |   |
| Accumulated depreciation |   |   | (62,605 | )      |   |   | (34,239 | ) |
|                     |   | $      | 105,814 |   |   | $      | 134,180 |   |

| Depreciation expense for the years ended December 31, 2010 and 2009 was $28,366 and $22,357, respectively. |
|------------------------------------------------------------------------------------------------------------|
|                                                                                                       |
|                                                                                                       |   |   |   |   |   |   |   |   |   |
| Note 3.  LOANS PAYABLE                                                                           |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |   |   |   |
| At December 31, 2010 and 2009, the Company was obligated for the following loans:                          |

|                                                                                                         |   | 2010   |    |   | 2009   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| 10.99% Loan payable due in 60 equal monthly installments of $1,081 through March 2014; secured by vehicle    |   |   |    |   |   |   |
|                                                                                                         |   |   |    |   |   |
|                                                                                                         | $      | 35,290 |    |   | $      | 43,861 |   |
|                                                                                                         |   |   |    |   |   |   |   |   |
| 10.99% Loan payable due in 60 equal monthly installments of $1,000 through March 2014; secured by vehicle    |   |   |    |   |   |   |   |   |
|                                                                                                         |   |   |    |   |   |   |   |
|                                                                                                         |   | 32,654 |    |   |   | 40,585 |   |
|                                                                                                         |   |   |    |   |   |   |   |   |
| 10.50% Term loan payable due in 61 equal monthly installments of $623 through October 2011                   |   |   |    |   |   |   |   |   |
|                                                                                                         |   |   |    |   |   |   |   |
|                                                                                                         |   | 2,970  |    |   |   | 9,851  |   |
|                                                                                                         |   |   |    |   |   |   |   |   |
| 8.00% Loan payable due in 144 equal monthly installments of $383 through October 2020; secured by motor home |   |   |    |   |   |   |   |   |
|                                                                                                         |   |   |    |   |   |   |   |
|                                                                                                         |   | 33,087 |    |   |   | 35,111 |   |
|                                                                                                         |   |   | 104,001 |   |   |   | 129,408 |   |
| Less current portion                                                                                         |   |   | (23,392 | )      |   |   | (24,832 | ) |
|                                                                                                         |   | $      | 80,609  |   |   | $      | 104,576 |   |

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| Yellow7, Inc.                                               |
|-------------------------------------------------------------|
| (Formerly Yellow7, LLC)                                     |
| Notes to Financial Statements                               |
| December 31, 2010 and 2009                                  |
|                                                        |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |
| Note 3.  LOANS PAYABLE (continued)                |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |
| Future minimum maturities of long term debt are as follows: |   |   |   |

| Year       |   | Amount |    |
|------------|--------|--------|---------|
| 2010       |   | $      | 23,392  |   |
| 2011       |   |   | 22,717  |   |
| 2012       |   |   | 25,272  |   |
| 2013       |   |   | 8,637   |   |
| 2014       |   |   | 2,767   |   |
| Thereafter |   |   | 21,216  |   |
|       |   | $      | 104,001 |   |

| Note 4.  STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                         |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |
| In July 2010, when the Company changes its equity structure to that of a corporation it issued 40,200,000 shares of common stock at par value for cash.                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |
| In August 2010 the Company issued 10,000 shares of common stock at $0.25 for cash.                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Note 5.  RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |
| In November 2006, the Company signed a five year lease for its offices with a managing member of the Company.  The lease, which terminates in October 2011 calls for monthly rental payments of $3,337.  Rent expense for the years ended December 31, 2010 and 2009 was $44,253 and $37,443, respectively. |
|                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Future minimum annual rentals under the terms of this lease are as follows:                                                                                                                                                                                                                                                     |   |

| Year |   | Amount |   |
|------|--------|--------|--------|
| 2010 |   | $      | 33,370 |   |

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|   | · | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name          | Age |  Office                                       | Since     |
|---------------|-----|----------------------------------------------------|-----------|
| Jason Burgess | 37  |  Chief Executive Officer, Treasurer, Director | Inception |
| Jon Burgess   | 40  |  Chief Operating Officer, Secretary, Director | Inception |

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| 1.   | any petition under the Federal bankruptcy laws or any state insolvency law filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he or she was a general partner at or within two years before the time of such filing, or any corporation or business association of which he or she was an executive officer at or within two years before the time of such filing; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | any conviction in a criminal proceeding or being named a subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from, or otherwise limiting, the following activities: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i. | acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | engaging in any type of business practice; or |
|-----------------|-----------------------------------------------|

| iii.   | engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any type of business regulated by the Commodity Futures Trading Commission, securities, investment, insurance or banking activities, or to be associated with persons engaged in any such activity; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | being found by a court of competent jurisdiction in a civil action or by the SEC to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | being found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.   | being subject to, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | any Federal or State securities or commodities law or regulation; or |
|----------------|----------------------------------------------------------------------|

| ii.   | any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or |
|------------------|----------------------------------------------------------------------------------------------------------|

| 8.   | being subject to, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Name and Principal Position | Year       |   | Salary($) |    | Bonus($) | StockAwards($) | OptionAwards($) | Non-EquityIncentivePlanCompensation($) | Change inPensionValue andNonqualifiedDeferredCompensationEarnings($) | All OtherCompensation($) |   | Total($) |   |
|--------------------------------------------------|------------|--------|-----------|---------|----------|----------------|-----------------|----------------------------------------|--------------------------------------------------------------------------------|-------------------------------|--------|----------|--------|
|                                        |       |   |      |    |     |           |            |                                   |                                                                           |                          |   |     |   |
| Jason Burgess, CEO, Treasurer, Director          |  2009 |   |      | 106,850 |     | Nil            | Nil             | Nil                                    | Nil                                                                            | Nil                           | Nil    |     |   | 106,850 |   |
|                                        |  2010 |   |      | 94,700  |     | Nil            | Nil             | Nil                                    | Nil                                                                            | Nil                           | Nil    |     |   | 94,700 |   |
| Jon Burgess, COO, Secretary, Director            | 2009       |   |      | 107,207 |     | Nil            | Nil             | Nil                                    | Nil                                                                            | Nil                           | Nil    |     |   | 107,207 |   |
|                                             | 2010       |   |      | 113,200 |     | Nil            | Nil             | Nil                                    | Nil                                                                            | Nil                           | Nil    |     |   | 113,200 |   |

----

----

| Name of beneficial owner                                                       |   | Amount ofbeneficialownership |   | Percentowned |
|--------------------------------------------------------------------------------|--------|------------------------------|--------|--------------|
| Jason Burgess, Chief Executive Officer104 Hardwicke Lane, Little Elm, TX 75068 |   | 17,600,000                   |   | 43.77%       |
| Jon Burgess, Chief Operating Officer104 Hardwicke Lane, Little Elm, TX 75068   |   | 17,600,000                   |   | 43.77%       |
| All officers and directors as a group (2)                                      |   | 35,200,000                   |   | 87.54%       |

|         | · | The Officers and Directors;                                                                                                                                     |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | · | Any person proposed as a nominee for election as a director;                                                                                                    |
|         | · | Any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to the outstanding shares of common stock; |
|         | · | Any relative or spouse of any of the foregoing persons who have the same house as such person.                                                                  |

----

|                               |   |   |   |   |   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|
|                               |   | 2009   |   |   | 2010   |   |
| Audit Fees                         |   | $      | -0-    |   |   | $      | 17,500 |   |
| Audit-Related Fees                 |   | -0-    |   |   | -0-    |   |
| Tax Fees                           |   |   | 2000   |   |   |   | 1500 |   |
| All Other Fees                     |   |   | -0-    |   |   |   | -0- |   |
|                               |   |   |   |   |   |   |   |   |
| Total Audit and Audit-Related Fees |   | $      | 2000   |   |   | $      | 19000 |   |
|                               |   |   |   |   |   |   |   |   |

|   | Item 15.   Exhibits. |
|--------|-------------------------------------|

| (a)   | Exhibits |
|-----------------|----------|

|        |        |   |   |                                                                   |
|-------------|-------------|--------|--------|------------------------------------------------------------------------|
| Exhibit No. | Description |
|        |        |   |   |                                                                   |
|        | 3           | .1     |   | Articles of Incorporation, as currently in effect*                     |
|        | 3           | .2     |   | Bylaws, as currently in effect*                                        |
|        | 4           | .1     |   | Specimen common stock certificate*                                     |
|        | 23          | .1     |   | Consent of   David A. Aronson, CPA, PA (filed herewith) |
|        | 31          | .1     |   | 302 Certification – Jason Burgess (filed herewith)               |
|        | 32          | .1     |   | 906 Certification – Jon Burgess (filed herewith)                 |

|   | * | Previously filed with the SEC as exhibits on the registrant’s Form S-1for Registration of Securities on February 9, 2011. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

----

|   | YELLOW7, INC. |                    |
|--------|---------------|-------------------------|
|   |          |                    |   |
|   | By:           | /s/ Jason Burgess  |   |
|   |          | Jason Burgess           |   |
|   |          | Chief Executive Officer |   |
|   |          |                    |   |

| Signature                     |   | Title                        |   |
|-------------------------------|--------|------------------------------|--------|
|                          |   |                         |   |
| /s/ Jason Burgess   |   | Principal Executive Officer  |   |
| Jason Burgess       |   | Treasurer and Director       |   |
|                          |   |                         |   |
| /s/ Jon Burgess          |   | Principal Financial Officer  |   |
| Jon Burgess              |   | Principal Accounting Officer |   |
|                          |   | Secretary and Director       |   |

----

|        |        |   |   |                                                                   |
|-------------|-------------|--------|--------|------------------------------------------------------------------------|
| Exhibit No. | Description |
|        |        |   |   |                                                                   |
|        | 3           | .1     |   | Articles of Incorporation, as currently in effect*                     |
|        | 3           | .2     |   | Bylaws, as currently in effect*                                        |
|        | 4           | .1     |   | Specimen common stock certificate*                                     |
|        | 23          | .1     |   | Consent of   David A. Aronson, CPA, PA (filed herewith) |
|        | 31          | .1     |   | 302 Certification – Jason Burgess (filed herewith)               |
|        | 32          | .1     |   | 906 Certification – Jon Burgess (filed herewith)                 |

|   | * | Previously filed with the SEC as exhibits on the registrant’s Form S-1for Registration of Securities on February 9, 2011. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

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